ApeCoin (APE) Struggles to Establish a New Bottom
Just days after Yuga Labs introduced new elements to the Otherside metaverse game, ApeCoin hits a record low.
ApeCoin (APE) Struggles to Establish a New Bottom
ApeCoin, the focal token within Yuga Labs' ambitious Otherside metaverse game, has hit an all-time low amid the backdrop of the Bored Ape Yacht Club (BAYC) NFT collection facing new pressures.
Specifically, ApeCoin plummeted to $1.73 on the evening of August 1, marking a more than 93% drop from its peak a year ago. The token currently ranks 65th in market capitalization, with a total value of $675 million. As of the time of writing, APE has rebounded to $1.84 spurred by Bitcoin's recovery momentum, yet still down 10% over the week.
[1D chart of APE/USDT pair on Binance at 09:02 PM on 02/08/2023]
Recently, Yuga Labs unveiled new elements for the Otherside game at an exclusive event, but these have not changed the overall landscape. For some, this was an opportunity to adorn their Bored Ape NFTs with a new virtual avatar.
At its peak, the Bored Ape Yacht Club NFTs created a frenzy, dubbed as the "Supreme of the NFT world" during the 2021-2022 period with a collection of 10,000 NFTs. However, as the PFP (Profile Picture) market cooled down, related assets that once brought tremendous success to Yuga Labs are now undergoing significant challenges.
Earlier today we brought together a small focus group of 40 Voyagers in LA to delve into Otherside for a vibe check.🧵 pic.twitter.com/fXpyUk81w8
— Othersidemeta (@OthersideMeta) July 28, 2023
ApeCoin was launched into the market in March 2022 at a floor price of $8.54 and surged to $26.7 in the following months. Meanwhile, Bored Apes peaked at 152 ETH (worth $429,000) per NFT in April 2022, ahead of Otherside's launch of NFT lands to support player customization of their own spaces.
On the legal front, Yuga Labs is also embroiled in a lawsuit with content creator Ryder Ripps, accusing copyright infringement. The trial commenced at the U.S. District Court for the Northern District of California on Monday.
Read more: Yuga Labs reaches settlement in BAYC NFT copyright lawsuit
Similarly, on the regulatory side, ApeCoin has drawn scrutiny from the U.S. Securities and Exchange Commission (SEC), alleging unregistered service offerings and violations of investor protection rules. According to the SEC, certain NFTs like BAYC and ApeCoin are considered securities.
